Does Homeowners Insurance Cover Airbnbs?

Home Insurance and Airbnb

Homeowners insurance and Airbnb might not seem like they go hand in hand but trust us when we tell you that they're like peanut butter and jelly in the world of property protection! Homeowners' insurance doesn’t exist only to protect your home against burglaries or natural disasters; it can also be your guardian angel when you decide to open your home to guests via home-sharing platforms like Airbnb. Whether it's accidental damage or a lawsuit waiting to happen, it's there to save the day. So, before you become the host or prepare for your next Airbnb adventure, ensure your homeowners' insurance is in tip-top shape.

Does Homeowners’ Insurance Cover Your Airbnb?

A standard homeowners’ insurance policy does not include insurance coverage for damage to your home as a result of an Airbnb stay. This means that if any damage occurs during a guest's stay, your regular policy may not provide financial protection.

Your basic homeowners’ or condo insurance policy offers coverage for property and liability damage, but with a significant condition: it only applies when your home or condo is your primary residence and isn't being used for commercial or business purposes. However, it can still protect you against acts of nature, such as severe storm damage to the structure of your home, even if it's unrelated to an Airbnb stay.

If you own a secondary or vacation home, there are specific policies designed to address the unique risks associated with properties that are infrequently lived in. However, if you're renting out your property on platforms like Airbnb, VRBO, or HomeAway, you'll need something called short-term rental coverage. This coverage, in addition to your regular policy, is essential to ensure you're fully insured for any losses that might occur during a guest's stay. It's a crucial step in safeguarding your property and finances when hosting short-term guests.

Coverage by Policy Type for Short-Term Rental Hosts

Does Airbnb Offer Insurance?

Yes, they do. Airbnb provides two types of coverage for hosts: the Host Guarantee and Host Protection Insurance.

Host Guarantee:

This policy is automatically included with every Airbnb listing without any additional charges. It covers you if a guest damages your property or steals your stuff during their stay. For instance, if a guest swipes your iPad or accidentally starts a kitchen fire, Airbnb will reimburse you for the loss. But here are certain things you need to keep in mind:

1. You'll only get reimbursed for the depreciated value of your damaged or stolen items.

2. It only covers damage caused by guests, not natural disasters or theft by non-guests.

3. You must file your reimbursement request within fourteen days of the guest checking out or before the next guest checks in.

4. Valuables like jewelry, artwork, collectibles, or cash aren't covered.

Host Protection Insurance:

This insurance is also included with your Airbnb listing and is "primary," which means it kicks in before your personal insurance. It covers you for up to $1 million in cases like:

1. A guest getting injured in your home and suing you.

2. A guest accidentally harming someone in a shared area of your building.

3. If you and your landlord are sued for an injury in a shared area of your building, your liability is covered.

4. Valuables like jewelry, artwork, collectibles, or cash aren't covered.

However, it doesn't cover everything. For instance, if your guest intentionally harms someone or your property has defects like bed bugs or mold that hurt your guests, you might not be covered.

So, while Airbnb offers some insurance, it's a good idea to review your own coverage to make sure you're fully protected.

Do I Require Short-Term Rental Insurance for an Airbnb Property?

You might think your regular home insurance policy and Airbnb's coverage are enough to protect your property. But the truth is, you should consider getting additional short-term rental insurance.

Firstly, it's essential to understand that Airbnb's Host Guarantee isn't the same as insurance. It's a limited guarantee that may only reimburse you in certain situations if a guest damages or steals your belongings. Your standard homeowners’ or vacation home insurance may cover you when you're using the property personally, but it usually doesn't provide adequate protection for commercial or business use, like short-term rentals.

The process can vary when it comes to getting short-term rental insurance. Some insurance companies might only require you to add extra coverage, also known as an endorsement, to your existing homeowners’ insurance policy. On the other hand, some insurers offer separate insurance policies specifically designed for frequent but temporary rentals like Airbnb. So, explore your options and find the best coverage that suits your needs.

Does Airbnb Offer Insurance for Guests?

Yes, Airbnb does offer insurance to its hosts. They've got this cool program called AirCover, and guess what? It's totally free for hosts, and it's automatically included when you list your space. AirCover isn't just one thing; it's like a trio of protection. First, you've got Host Damage Protection, which covers your property against accidental damage caused by guests. So, if someone accidentally breaks your vintage vase or spills red wine on your precious rug, you're covered.

Next, there's Host Liability Insurance. This is important because it helps protect you if a guest gets injured during their stay and blames it on your property. It's like having a safety net in case things go south.

But wait, there's more! If you're one of those hosts offering unique experiences, like cooking classes or outdoor adventures, you're in luck. Airbnb's got you covered with Experience Liability Insurance. Since these activities come with their own set of risks, this insurance steps in to keep you protected.

So, whether you're hosting travelers looking for a comfy place to crash or adventurers seeking thrilling experiences, Airbnb's got your back with its AirCover insurance program. It's like having a trusty sidekick to ensure your hosting journey is smooth and worry-free.

Airbnb Laws by City

Navigating Airbnb laws across different cities can feel like stepping into a patchwork quilt of regulations. It's like comparing apples to oranges – each place has its own set of rules. Let's take a quick tour of some major cities and their Airbnb regulations:

Los Angeles:

If you're hosting in LA, ensure your short-term rental is registered with the city. Plus, you can only rent it for up to 120 days a year. Go beyond that, and you'll need to apply for an extended-stay registration. Keep an eye on the calendar!

New York City:

The Big Apple was one of the pioneers in Airbnb restrictions. New York City's got a laundry list of laws and zoning rules, but you can find all the juicy details on their website. Airbnb also has a handy guide to navigate this concrete jungle.

San Francisco:

In San Francisco, you must register your rental property with the city and snag a certificate from the Office of Short-Term Rentals. Just remember, you've got to live in that property for at least 275 days a year to keep things running smoothly.

Denver:

If you're in the Mile-High City, you'll need either a Short-Term Rental business license for stays under 30 days in your primary residence or a Lodging Facility business license for larger rental spaces. It's a license to chill.

Portland:

In Portland, you'll need to jump through a few hoops. Think safety inspections, permit fees, and complying with rental or HOA agreements. Plus, there's a limit on how many months you can rent out your entire place. Time to recheck your calendar!

Washington DC:

Hosts must obtain licenses in the nation's capital, and the length of rentals depends on whether the owner is present. If you're home while renting, the sky's the limit. If not, you're looking at a max of 90 days each year.

The Risks of Home-sharing

Host Risks:

When it comes to hosting temporary guests, it's important to be aware of the potential risks that could catch you off guard and cost you a pretty penny. These risks aren't something to be taken lightly. They include theft, property damage, and even the sobering responsibility for guests who might get injured while under your roof.

You might think your homeowners’ insurance has your back, but here's the catch: when you start renting out your home, there can be some gaps in that coverage. You see, most homeowners’ insurance policies aren't cut out for the business of short-term rentals. They often exclude or offer limited coverage for homeowners who decide to turn their abode into a moneymaking venture.

But hold on, it doesn't end there. Some of those home-sharing websites try to ease your worries by offering their own insurance. Airbnb, for instance, throws around a big-sounding $1 million liability coverage. But here's the twist—the fine print in their terms-of-service statement has some disclaimers that put the accountability squarely on your shoulders, not theirs.

Guest Risks:

Now, let's flip the coin and look at things from the guest's side of the fence. It's not all roses for them either. When you decide to stay in someone else's home through a home-sharing deal, you're taking on some risks of your own.

For starters, your valuables might be at the mercy of floods or fires inside the house. There's also the possibility of getting injured by things lying around the house or dealing with hazards because there's no first aid kit or carbon monoxide detector in sight. Moreover, those homes you're renting out don't have the same safety standards as hotels or other businesses, so you must watch for potential threats lurking in your temporary home.

Here's the kicker: most home-sharing platforms don't offer insurance for guests. However, a lifeline called travel insurance can save the day in case of emergencies or injuries during your trip. Just give your insurance advisor a ring and let them work their magic. They'll help you dig deeper into the ins and outs of your insurance policies and the rental company's rules.

What Is Home-Sharing Insurance?

Home-sharing insurance, often called short-term rental insurance, is like a protective shield for hosts who open their homes to renters. It's a safety net that safeguards your property and financial well-being in case things go wrong while guests are staying in your home.

You've got a couple of options for getting this kind of coverage. One way is to add it as an endorsement to your existing homeowners’ insurance policy, giving you that extra layer of protection. Alternatively, some companies offer standalone short-term rental insurance policies tailor-made for hosts like you.

Now, here's the twist. Many home-sharing platforms might throw in some insurance coverage as a sweetener for hosts and guests, but don't be fooled—it often comes with limitations. That's where buying your own short-term rental insurance comes into play. It's like upgrading from a basic seat to first class; you get more comprehensive coverage, ensuring peace of mind while you share your space with others.

What’s Covered by Short-Term Rental Coverage?

Short-term rental insurance is like a safety net for hosts like you. It's there to protect you from unexpected bumps in the hosting journey. Here's what it usually covers:

1. Guest Liability Insurance: This is your shield against accidents. Let's say a guest slips and falls or accidentally breaks a vase. Guest liability insurance has your back, covering the costs and even legal hassles if they happen to sue.

2. Property Insurance: This one's a lifesaver for your space and stuff. If a guest damages your property or personal items, like your fancy coffee maker or TV, during their stay, this part of the insurance helps you recover the repair or replacement costs.

3. Theft and Burglary: Nobody wants to think about it, but sometimes, bad things happen. If someone breaks into your place or a renter decides to help themselves to your belongings, the insurance can come to the rescue and reimburse you for the stolen items.

Remember, the specific details of your policy might vary, so it's always a good idea to double-check the fine print and chat with your insurance provider to make sure you have the coverage that suits your hosting needs.

What Companies Offer Short-Term Rental Coverage?

Allstate: If you already have an Allstate homeowners or condo insurance policy, you can add Host Advantage. It covers theft and damage to your personal items during rentals up to $10,000 and even gives you $25 off cleaning services with Merry Maids.

American Family: They offer temporary rental coverage as an add-on to their home insurance policies. It covers property damage, theft, and burglary, but only if you rent your home for less than 62 days a year.

American Modern: Ideal for rentals under three months, their policies offer replacement cost coverage for structures and various add-ons like burglary, theft, and more.

CBIZ: For properties rented for less than six months annually with multiple renters, CBIZ offers standalone insurance. It includes $2 million in liability coverage, medical payments, and property damage, and even covers unique liabilities like pools and exercise equipment.

Erie: Erie's Home Sharing Coverage is an add-on to homeowners’ insurance, covering property damage, liability, and theft, but only for primary homes.

Proper: They provide standalone policies with up to $2 million in liability insurance, property coverage, income protection, and unique extras like "squatter protection" and "bed bug protection" with no income coverage limit.

USAA: If you're a military member, veteran, or family, USAA's Rental Property Insurance offers home-sharing coverage, including liability and property coverage for rentals under 30 days through platforms like Airbnb and Vrbo.

Summary

Homeowners' insurance usually doesn't cover damage caused by Airbnb guests, except for natural disasters. If you're renting out your property, you must consider getting short-term rental insurance to be fully protected. However, Airbnb does offer some coverage for hosts through the Host Guarantee and Host Protection Insurance, but there are limitations and exclusions, so it's wise to review your own insurance as well.

For guests, there's often no insurance provided by home-sharing platforms, but you can get travel insurance for added protection. Short-term rental coverage typically includes guest liability insurance, property insurance, and coverage for theft and burglary.

Several insurance companies like Allstate, American Family, American Modern, CBIZ, Erie, Proper, and USAA offer short-term rental coverage, so you have options to choose from based on your needs and situation. When hosting or staying in an Airbnb, it's essential to understand the risks and the insurance options available to ensure a worry-free experience.

How to file a home insurance claim for Airbnb with Way.com

Filing a home insurance claim for Airbnb with Way.com is a breeze. Our platform makes it simple and convenient to seek coverage for Airbnb-related damage to your home. Just visit our user-friendly website, where you can easily file a claim with ease.

But that's not all – our local team of friendly home insurance agents is here to assist you every step of the way. They are committed to making insurance straightforward by breaking down complex terms, explaining rules, and outlining coverage choices. Plus, they'll walk you through the entire claims process, ensuring it's a swift and hassle-free experience. Your peace of mind is our priority at Way.com.